Capital accumulation and growth: a new look at the empirical evidence

Bond, Stephen, Leblebicioglu, Asli and Schiantarelli, Fabio (2010) Capital accumulation and growth: a new look at the empirical evidence. Journal of Applied Econometrics, 25 (7). pp. 1073-1099.

Abstract

Using annual data for 75 countries in the period 1960–2000, we present evidence of a positive relationship between investment as a share of gross domestic product (GDP) and the long-run growth rate of GDP per worker. This result is robust for our full sample and for the subsample of non-OECD countries, but not for the subsample of OECD countries. Our analysis controls for time-invariant country-specific heterogeneity in growth rates, and for a range of time-varying control variables. We also address endogeneity issues, and allow for heterogeneity across countries in model parameters and for cross-section dependence.

Item Type: Article
Keywords: investment; gross domestic product
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 28 May 2012 13:31
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/3427

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